Rompetrol Rafinare posts $19.9m in H1 losses

Rompetrol Rafinare (Petromidia), the most important company in the Rompetrol Group logged $19.9 million in H1 losses under the international accounting standards (IAS), 74% higher than in the same time in 2003.
Dinu Patriciu, chairman and main shareholder of Rompetrol, however, says the development of the company is good and the main cause for the increase in losses lies in the additional financial expenses.
“First of all, it is about the $25 million interest we have to pay for the bonds issued to the Romanian State. Even though it is paid in full in September, under the IAS we have to record monthly interest payments. This made financial expenses in the first half increase by $12.5 million,” Patriciu says.
The bonds issued by the State early this year account for the settlement of Petromidia’s historical debt to the state budget, worth $603 million. The bonds mature in seven years.
Rompetrol’s chairman says the development of the company is best shown by its EBITDA, which rose 32% to $18.8 million.
“EBITDA in the first half this year was higher than all through 2003, namely $11 million. I think this shows best that the company is on the right track and that our margins are getting better and better,” Patriciu says.
Petromidia’s gross revenues in the first half reached $561 million, 15% more than in the corresponding period of last year and the company anticipates the second half to be even better.
Rompetrol Rafinare expects the second half to end with $848 million gross revenues, while EBITDA could go up to $36 million.
The losses are projected to go down to $1.7 million in the last six months of this year.
Total losses might reach $21.6 million by yearend, while gross revenues are estimated at $1.4bn.
“We are confident we will attain the objectives set in the budget. Investments and streamlining operations in the last few years will become increasingly visible,” Patriciu stated.
Petromidia is still seeing a low profit margin as far as its refining business is concerned, as the prices of oil products on the Romanian market are low. This is why the company has worked out a strategy to boost the share of exports in the total turnover over the last few years.